Economic Assessments for the European Union
The UK must send an assessment of its economic position to the European Union. Parliament is required to approve the documents which form the basis of this assessment.
The European Union requires member states to submit information on their medium-term economic and fiscal position, known as their convergence programme. This requirement applies to the UK until the end of the transition period on 31 December 2020. The exercise is based on rules in the EU’s stability and growth pact, which aims to ensure that member states maintain sound public finances.
Both Houses of Parliament must approve the documents on which the UK’s assessment is based. The motion states that these documents are the spring 2020 budget and the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook and Fiscal Sustainability Report. HM Treasury has also published a separate convergence programme based on these documents.
The budget and OBR publications do not fully reflect the impact of coronavirus (Covid-19). The budget, published on 11 March, contained some measures in response to the virus, but these have since been significantly expanded. The Economic and Fiscal Outlook was finalised in February 2020, before the effects of the virus, or the Government’s response to it, were known. The Fiscal Sustainability Report was published in 2018.
On 5 May 2020, Lord True (Conservative) is due to move that “the virtual proceedings do consider Her Majesty’s Government’s assessment of the medium-term economic and fiscal position as set out in the latest budget document and the Office for Budget Responsibility’s most recent Economic and Fiscal Outlook and Fiscal Sustainability Report, which forms the basis of the United Kingdom’s convergence programme”.